Is the United States going to Default on it's own Debt?

C

Card Slinger J

Aspiring Trainer
Member
Something must be done to either raise the debt ceiling or to prevent financial catastrophe and soon, the deadline is on Aug. 2 and it seems as though some of the Republicans calling the shots on this issue are wagering the financial welfare of evey American in the country when all politicians need to put politics aside and get this done ASAP not for their own benefits but for the country itself cause the consequences are dire and dangerous.

Unemployment is still at 9.2%, The Obama Administration has failed to lead this country by scaring the markets, not even helping create more jobs, make budget plans, among other issues. I don't get why some politicans negotiating over this crisis think this is a game when it's not. The Government needs to wake up and understand what's going on, I'm just getting tired of politicians wagering the financial welfare of every citizen in the U.S. just to satisfy their own interests, needs, and financial welfare.
 
I don't quite understand economics and this whole debt crisis but I am interested, so could you explain or elaborate more on the topic?
 
Well I'm not an expert in economics either but I will do my best to explain the situation, so the current National Debt that we owe to the U.S. Government is $14.3 Trillion and If we go past that limit, the U.S. Government won't be able to borrow any more money from foreign countries that shares money with us like China unless we reduce Spending and cut Entitlements a couple of which we cannot afford to cut is Social Security and Medicare but this issue in order for it to be resolved does involve shared sacrifice.

If the Debt Ceiling is not raised by August 2nd, Interest Rates will skyrocket and the devastating effects it will have on the Global Economy is VERY severe. Due to the U.S. Constitution and the Amendments the U.S. CANNOT afford to go into Default, failure is not an option and we must do whatever it takes to be fiscally sane. Now recently the House of Representatives are trying to pass a bill to end the Debt Crisis only problem is that President Obama has threatened to veto it cause it doesn't suit with his Democratic Liberal ideals, well I say just pass the bill cause we are running out of time.

One of the problems especially why we are facing a deadlock with this issue is that there is a divide between Democrats and Republicans and unless they can resolve this issue on a Bipartisan level while putting political ideals aside they could doom us all without thinking of the American people and everyone else. I just don't get it, it's like when the House tries to pass a bill through Congress it either gets shot down by the Senate or gets Vetoed by the President.

As for the National Debt that we owe to the U.S. Government nobody is going to afford to pay off their own debts unless they seek help from God or use a program to make money out the wazoo but just think of the gravity of this, each American citizen doesn't even have $14.3 Trillion to pay off their own Debts and it could be reasonable to think that the whole Debt/Deficit system that we already have in place is Unconstitutional anyways. It's a system of borrowing money and spending money, we spend more than we borrow and that just leads to more problems in the long-term.
 
You realize that just because something was vetoed doesn't mean that it will never be passed, right? If it is vetoed, it will go to the House and Senate, and if at least 2/3 of it vote for it, then it will be forced to be passed. Though this would be unlikely, it's possible, so don't think it's over if we get a veto.

If you're honestly that worried, Card Slinger J, just sell everything you have and trade it for gold. Money loses value, gold does not. If the U.S. dollar becomes worthless, then what will you do with all that money?

If we end up not raising the debt ceiling, I honestly won't mind. Yes, things WILL deteriorate, we WILL lose things, international relationships WILL be weakened, but we got ourselves into this. If you want to do something about it, don't discuss it on the beach. Write a letter to the Senate or something, otherwise your complaints and warnings will fall on deaf ears.
 
You do have a valid point, I'll try to discuss this with my family and
contact my Congressman about this If I can. I'd like to go on the Gold Standard
but I don't know how and I'm not sure If my family is interested in it or not.

I don't plan on selling everything, I'm not an investor, stock broker, or an
economist and I don't even work on Wall Street either. I'm just a young adult with my family trying to make a living and doing the best I can.
 
What exactly is this bill that could help our debt, but Obama is threatening to veto only because he's a Democrat?
As for the National Debt that we owe to the U.S. Government nobody is going to afford to pay off their own debts unless they seek help from God
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And that's worked so well for everybody in the past who's tried that. I mean look at all the rich and non-foreclosed people out there.
 
Pokefan4000 said:
If you're honestly that worried, Card Slinger J, just sell everything you have and trade it for gold. Money loses value, gold does not. If the U.S. dollar becomes worthless, then what will you do with all that money?
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Though that tactic is safe, it is what NO ONE should really do if the US Dollar wants to stay in shape. Granted, the government's actions have been pushing the value of the dollar down, but if alot of people starts switching to gold, then US's economy is going to sink even faster with no one wanting to use the currency of their own country. That's what causes bank panics to begin with (leading to at least a temporary depression at best).
 
No, it's not economy that stinks... at least it's not completely at fault. One of today's major factors in deciding the economic is the politics, which clearly suck right now. Here's some simple proof. Simply the news of Obama getting along a bit better with congress gave many the relief and hope that things will be better... and the economy suddenly looks a bit sharper. Likewise, the worse politics get, the more negative people's viewpoints are and the worse their decisions regarding economy. We're still emotional creatures and thus economy is not fully governed by logic.
 
Crap, we got less than a week before Financial Armageddon and both parties still haven't come up with an agreement yet to fix the Debt Ceiling? I guess Congress and the U.S. Government only care about their political status instead of their own country. They never cared about the American people, only themselves.

What's making this even worse is that the Republicans who are currently running for President aren't making ANY contributions into fixing our Nation's Debt Crisis, not Tim Pawlenty, Rick Perry, Michelle Bachman, Newt Gingrich, Sarah Palin, or Mitt Romney, as they could've went over to Washington to help Congress and the others out on this issue.

What's the point of getting elected President in 2012 If your country is more important to secure and save? Focus on the Now and worry about Later when we cross that bridge you know what I mean? What's really stopping this issue from getting resolved to raise the Debt Limit is most likely Political Rhetoric from both the Democrats and the Republicans.

As much as I hate to see the United States to suffer the same fate as Ancient Rome years ago, it might actually become reality. However the consequences are similiar but very different, in our case it would have a devastating effect throughout the entire global economy.
 
I see that the S&P is threatening to lower the US grade. Any thoughts on that? This may be inevitable even if don't go into default and will be destructive to the global economy!
 
The whole situation regarding the potential downgrade of the U.S. Credit Score or Grade as you mentioned just means that it's more money that we would have to pay later, it won't have as much of a negative effect on the economy If it gets downgraded. I talked this over with my stepdad and that's what he told me. Lowering the U.S. Grade won't be as bad as the consequences of the country defaulting on it's own debt. Failing to raise the Debt Ceiling by the deadline on August 2nd would have much greater consequences to the Global Economy than lowering the U.S. Grade, otherwise I would've heard more about the U.S. Grade on C-Span or MSNBC shows like Morning Joe.

Even If we raise the debt ceiling, like what Obama said in his last speech we need a long-term deal (solution as the Republicans call it) to fix our Nation's Debt/Deficit and coming to this crisis again in 6 months is something all of us don't want. The problem is that there's no compromise on both sides and I think it's mainly the Republican Freshmen Caucus of Congress who are delaying this from getting resolved. Either that or it's the Senate's refusal to pass anything the House of Representatives succeeds in accomplishing to the point where the President will threaten to veto anything that doesn't suit his political ideals. I say screw political ideals since saving the financial stability of your own country is more important right now.

If President Obama and Treasury Secretary Tim Geithner both fail to pay their bills on time by next week then yes there's a likelihood that we will go into default but there's too much at stake to let that happen especially increasing interest rates and hurting Social Security and Medicare for the elderly. I don't mind Entitlement Reform or having to cut specific things that isn't vital to our health at least, If the politicians on the hill know of the consequences of failure then why are they letting their ideals cloud their judgment on what the best thing to do for our country right now? It's insane.
 
Card Slinger J said:
Something must be done to either raise the debt ceiling or to prevent financial catastrophe and soon, the deadline is on Aug. 2 and it seems as though some of the Republicans calling the shots on this issue are wagering the financial welfare of evey American in the country when all politicians need to put politics aside and get this done ASAP not for their own benefits but for the country itself cause the consequences are dire and dangerous.

Unemployment is still at 9.2%, The Obama Administration has failed to lead this country by scaring the markets, not even helping create more jobs, make budget plans, among other issues. I don't get why some politicans negotiating over this crisis think this is a game when it's not. The Government needs to wake up and understand what's going on, I'm just getting tired of politicians wagering the financial welfare of every citizen in the U.S. just to satisfy their own interests, needs, and financial welfare.
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The Key words here "Obama's administration has failed" I got news for you man. No it has not. The republicans yet again are interfering with the whole situation here. If they Shut their traps and actually progressed in helping Obama we would not be in this crisis right now. This has happened before and before it was much worse. See the republicans only care about their pocketbooks and they would never careless how the country is going to end up. All they care about is money and their fancy crap they have. They write checks and crap when the money is not there. This is the major reason why the economy crashed I might add. If you guys paid careful attention to the news when Bush was in Office and followed carefully you would notice how republicans operate. This is why we are where we are now. All because the Bush administration was writing checks they can't cash and taxing the poor which adds more insult to injury I might add. If the rich is taxed then we would not be in as deep as a hole as we are right now but no one wants the rich to be taxed. Without the taxes on the rich there is nothing there to cushion the economy and get it on a more level foundation like it once was before Bush stepped in. His dad left dirty tracks for his son and we are at war yet again and we will always have a war if we have a Bush family member as president. I know all of this is why we are here right now and if we can't get the debt ceiling raised people will have nothing left unless they are members of a church or something. Right now if the republicans don't get their act together and help Obama we will crash yet again and NO ONE wants that to ever happen again. If it does we will definitely be in a depression and will be since WWII. It will be worse than that though XD.:(
 
Right now it's near impossible to get anything done because our Government is full of bumbling old fools who only care about one side or the other. It takes cooperation to run the Government, not two rival groups.
 
As much as I hate to be the bearer of bad news, I heard from a source (I'll post the link here soon below) that another market crash is due in 2013 but maybe just maybe the next Administration that takes office can forestall or stop it from happening. It doesn't look too good, we're talking about the possible garauntee of default, unemployment at 50%, higher interest rates, and possibly higher gas prices which would not only be bad for people who want to go out and vacation but also for us who spend money on TCG's like Pokemon.

Here's the links regarding the source material I've heard about this from, yeah it's pretty bad but I'm hoping this guy is wrong and I'd really hate for him to be right but it seems like whatever we do it's inevitable, the Debt Bomb is going to get us eventually one way or the other. Unless we act now and for whoever takes office in the next Presidential term (hopefully not Obama after all the problems he's caused though Bush Jr. was worse I'll give it that) that can help fix our economic problems we won't see financial stability in this country for a very long time.

http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1

Here's the book that was discussed from the above video:

http://www.amazon.com/Aftershock-Protect-Yourself-Financial-Meltdown/dp/0470918144?tag=vglnk-c1014-20

Tyrant Tyranitar said:
It takes cooperation to run the Government, not two rival groups.
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Got that right, political gridlock isn't going to solve the problem.
 
CS3: It is not Obama that is causing the problem here. It is the republicans FAILING to help the president. The president has a plan but no one wants to sign off on it. There is a possible chance that it will last til next year or 2013 yest but no one knows for sure how they are going to slice it though. It is not Obama here. It is the house and Baner.. Baner is the major problem here actually. If Baner does not shut up nothing will happen. That's what he wants. Baner is doing everything he can to crash the market yet AGAIN.:(
 
Well what I was reffering to earlier in terms of Obama's Presidency so far is mostly due to not ending the wars in Iraq and Libya while keeping Afghanistan in check because the U.S. still plays a vital role in that country in terms of counter-terrorism. I do think he wants to get this problem regarding the Debt resolved as soon as possible before the August 2nd deadline and it doesn't help If he says he's going to veto anything the Republicans throw at him, he needs to accept what can save this country from financial disaster and be done with it. Harry Reid I think is trying to be bipartisan on this issue but I don't think he's trying hard enough.

John Boehner, he's a good guy and down to Earth I'll admit it however in his Republican Response to Obama regarding the Debt Crisis he was playing politics again without being bipartisan. How do you expect to get anything done If our Government doesn't solve this in a bipartisan approach? He's hurting the GOP as much as Eric Cantor did until he finally came to his common sense and logic to tell everyone to put politics aside on this issue to the other members of Congress. But that's the thing, this issue isn't about the GOP or the Democrats it's about them finding common ground with eachother to get rid of this deadlock and raise the debt ceiling like a responsible Government should.
 
No not Bohner Bainer or whatever their names are. The speaker of the house. That guy is a real problem because he does not want to see the bill pass and it could pass tonight if all goes well. Anyone on SSI will still be ok they found out and those with savings bonds but those with 401K's and Roth IRA will loose everything. Yeah it is really bad. Hope it gets fixed tonight XD.:)
 
Worst case scenario on the 11th Hour of August 2nd, President Obama could invoke the 14th Amendment to raise the Debt Ceiling. If that's the case he'd be under alot of scrutiny and impeachment scandals worse than what happened with President Clinton during the 90's with Monica Lewinsky. Not just that but his chances of getting re-elected in 2012 would diminish.

If the Harry Reid Bill doesn't pass the House after the Senate then they still got the Rand Paul Bill to pass which would cut spending by %1 each year for 8 years in order to balance the budget. Whether If that Bill is better than the Bill that Harry Reid is proposing to get passed in the House is yet to be determined but I think the Rand Paul Bill is our best bet right now. If it includes tax increases then Obama is likely to get it passed If not then there's trouble.

Even after this mess, we still need to fix manufacturing, jobs, and get ahead of China whose beating us right now. The United States used to take pride in manufacturing and jobs but it's slowly siding with China as we speak cause like I said they already own part of our Debt. They even hate us and they're making fun of us. The Tea Party Americans probably pose the biggest threat of defaulting our country, not Beonher.
 
Yes it is definitely completely one-sided. Obama is willing to do everything that Boehner wants and Boehner is just sitting there saying no. That's definitely how it's going down xxashxx.

This was completely sarcastic if you couldn't tell.
 
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